The travel retail industry needs to address the two key issues of reliable market data and the conversion rate to secure future growth, TFWA President Philippe Margueritte told the audience at the opening conference of the TFWA World Exhibition & Conference taking place in Cannes this week.
Margueritte underlined that the industry is operating blind, as it makes decisions based on estimates rather than accurate data. He added that travel retail is the poorest industry when it comes to data and business intelligence, and that it must look to achieve what the high street accomplished years ago. The TFWA is sketching a framework for the use of data.
In terms of the conversion rate, Margueritte says the industry lost 4% in traveler spend between 2019 and 2024, and that it needs to create more excitement around shopping. He added that passengers are spending less due in part to high air fares and inflation.
Part of generating excitement at the point of sale will be through innovation and new technology. Margueritte also highlighted the opportunity presented by artificial intelligence.
In a bid to illustrate the power of AI, Margueritte welcomed on stage a humanoid robot who answered questions about the challenges in the travel retail market.
Tension in the market
Despite the current tension in the market, as a result of geopolitical volatility, Margueritte said he remains optimistic about the long-term prospects. He pointed out that passenger numbers are expected to double by 2044 to 18 billion and that by 2028, 42 million passengers are forecast to take a cruise.
However, he warned of the specter of demographic decline and to the possible hit on the travel-retail industry.
During the conference, former NBA basketball player and entrepreneur Tony Parker also spoke about his experiences in sport and business.
Innovation Square
Following the opening conference, the association proceeded with the traditional ribbon cutting, which this year took place in front of the show’s new Innovation Square. This new concept space presents experiences and solutions in travel retail from brands, retailers, airports and creative agencies.
The space is located at the foot of the Palais des Festivals steps. It is available for private hire throughout the show and will remain open until 9pm each evening to provide networking opportunities. The space will also host TFWA’s workshop sessions before the exhibition halls open.
